Next Article in Journal
The Impact of the Basel Accord on Greek Banks: A Stress Test Study
Next Article in Special Issue
Network Analysis of the Shanghai Stock Exchange Based on Partial Mutual Information
Previous Article in Journal
Are Women More Likely to Seek Advice than Men? Evidence from the Boardroom
Open AccessArticle

Firm Value and Cross Listings: The Impact of Stock Market Prestige

Federal Reserve Bank of New York, 33 Liberty Street, Main 3, New York, NY 10045, USA
Author to whom correspondence should be addressed.
Academic Editor: Christian Brownlees
J. Risk Financial Manag. 2015, 8(1), 150-180;
Received: 27 October 2014 / Revised: 26 February 2015 / Accepted: 9 March 2015 / Published: 23 March 2015
(This article belongs to the Special Issue Econometric Analysis of Networks)
This study investigates the valuation impact of a firm’s decision to cross list on a more (or less) prestigious stock exchange relative to its own domestic market. We use a network analysis methodology to derive broad market-based measures of prestige for 45 country or regional stock exchange destinations between 1990 and 2006. We find that firms cross listing in a more prestigious market enjoy significant valuation gains over the five-year period following the listing. In contrast, firms cross listing in less prestigious markets experience a significant valuation discount over this post-listing period. The reputation of the cross-border listing destinations is therefore a useful signal of firm value going forward. Our findings are consistent with the view that cross listing in a prestigious market enhances firm visibility, strengthens corporate governance, and lowers informational frictions and capital costs. View Full-Text
Keywords: cross-listings; network analysis cross-listings; network analysis
MDPI and ACS Style

Cetorelli, N.; Peristiani, S. Firm Value and Cross Listings: The Impact of Stock Market Prestige. J. Risk Financial Manag. 2015, 8, 150-180.

Show more citation formats Show less citations formats

Article Access Map by Country/Region

Only visits after 24 November 2015 are recorded.
Search more from Scilit
Back to TopTop